Sigma Designs Inc. (NASDAQ-SIGM)
Price July 11, 2011-$8.49
SIGM has fallen recently after their last quarters earnings release. We think this has presented a buying opportunity.
SIGM has $5.27 a share in net cash, 50% gross margins and about $250 million in annual sales.
Their last quarter sales were down 7% from the prior year to about $61 million and they lost $5.7 million versus a profit of $2.5 million. On a non-GAAP basis, they made $2.3 million versus $10 million last year.
With $170 million in cash and trading at 53% of our valuation, we think this is a BUY.
Average trading volume is about 400,000 shares a day.
Sigma Designs Inc.
Sigma Designs, Inc. (NASDAQ:SIGM – News) is a world leader in connected media platforms. The company designs and builds the essential semiconductor technologies that serve as the foundation for the world’s leading IPTV set-top-boxes, connected media players, residential gateways, home control systems and more.